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New EU job laws could result in one in three employers sacking agency workers

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Research has shown that one in three employers could sack agency workers ahead of changes to employment law resulting from the European Agency Workers Directive.

The changes will require employers to give agency workers the same pay and benefits as permanent staff after they have been employed for 12 weeks. To avoid the cost of complying with these obligations a third of companies are looking to sack agency staff in the eleventh week of their contract, according to a report prepared by a law firm. This would mean that with the new rules coming into effect on the 1st October the law firm predicts a total of approximately 462,000 temp staff could be out of a job in the run up to Christmas.

The rules will not only make temp staff eligible after the 12 week period to the same basic pay as permanent staff but also any performance related bonuses, overtime and paid holidays. In addition to this the changes due next near year to pension schemes which require companies to set up a scheme and contribute will also apply to temp staff qualifying under the 12 week rule. According to the report a third of the companies surveyed had not given this any consideration.

Stefan Martin, employment partner at the law firm pointed out the impact these changes could have on companies during difficult economic conditions. He said: “The advantages of using a flexible workforce during the current economic climate will be compromised as employers feel the burden of additional rules and regulations.”

Written by Andrew Hodges

September 23, 2011 at 8:55 pm

Posted in Comment, LinkedIn

Tagged with , ,

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